Michael Is a Franchise Restaurant Owner

question 27

Multiple Choice

Michael is a franchise restaurant owner.Which of the following best describes his franchising costs?

• A)a franchise fee to start,a monthly royalty as a percentage of sales,and other operational costs
• B)a royalty to the franchisor,calculated as a percentage of net income plus other operational costs
• C)the same as any other restaurant owner
• D)a franchise fee to start,plus other operational costs

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